Auto Supply Parts Store Insurance Policy Information
Auto Supply Parts Store Insurance. Automobile accessories stores sell a wide range of retail and wholesale auto parts and supplies for repair and replacement. Some automobile accessory stores have machinery operations to repair or rebuild parts such as brake drums or to custom-make old, difficult-to-replace parts.
Other operations may include repair services, facilities to repair your own vehicle, rental of tools and equipment, and tire replacement operations. Used and rebuilt parts may be available as stock. Some specialize in foreign parts. Many stores are part of a franchise, chain, or purchasing group.
Business owners who operate an auto supply parts store might be considering whether or not to purchase an insurance policy. And, if so, which insurer to go through, and which optional or incidental protection to add to their policy coverage.
First and foremost, yes you do need to purchase an insurance policy; in addition to this, depending on the value of your supplies/products, where your store/shop is located, and other factors surrounding your business, will help you in determining what is truly required and what level of coverage you need, when the time comes to choose your auto supply parts store insurance policy.
Auto supply parts store insurance protects your shop from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked auto parts & supply store insurance questions:
- What Is Auto Supply Parts Store Insurance?
- How Much Does Auto Supply Parts Store Insurance Cost?
- Why Do Auto Parts Stores Need Insurance?
- What Type Of Insurance Do Auto Parts Stores Need?
- What Does Auto Supply Parts Store Insurance Cover & Pay For?
What Is Auto Supply Parts Store Insurance?
Auto supply parts store insurance is a type of insurance that protects auto parts stores from financial losses that can arise from a variety of risks and potential liabilities. This insurance coverage typically includes protection for property damage, theft, product liability, and other common risks faced by auto parts stores.
The insurance policy may also cover loss of income, business interruption, and other financial losses related to a covered event. The coverage provided by auto supply parts store insurance is designed to protect the business and its assets, as well as its employees and customers.
How Much Does Auto Supply Parts Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small auto supply parts stores ranges from $47 to $59 per month based on location, size, payroll, sales and experience.
Why Do Auto Parts Stores Need Insurance?
This auto supply parts store insurance policy protects you from the many potential claims your shop faces. As is the case with any line of business, having a insurance policy in place is just smart practice for any business owner to consider. Some of the many reasons to invest in a policy include:
- It protects your shop. Whether storm damage occurs, a window breaks, or inventory is damaged, it is covered.
- You can protect your shop from theft, burglary, and other forms of loss.
- You can choose varying levels of coverage, based upon the inventory, types of products sold, and value of shop supplies.
- As a business, you never truly know what can go wrong. If and when something does, your auto supply parts store insurance policy is going to protect you, and the work you have put into building that business.
An auto supply parts store insurance policy is basically a security "blanket" for a business owner. It protects you from what can go wrong. All though you hope for the best, you never truly know if something will go wrong. With the right coverage in place, you can fully protect your business, the money you have put in, and the time/effort you have put into building it up.
What Type Of Insurance Do Auto Parts Stores Need?
When choosing the auto supply parts store insurance coverage and the insurer to go through for your policy, businesses have to weigh several factors.
First you must consider what you sell. What are the values of the items and supplies you carry in stock? How much inventory do you keep on hand?
Is your shop in a dangerous area (for burglary protection or possible storm/weather threats)? Do you want to protect your shop, the building, and all inventory in warehouses?
When choosing an insurer and level of coverage, these are a few of the many factors you must consider to choose the right level of auto supply parts store insurance protection as well as the right insurer for your policy needs.
No two shops or businesses are alike, so insurance needs are going to vary. Before purchasing a policy, comparing quotes, comparing insurers, and comparing the options (and additional optional coverage) available, are just a few of the many ways in which you can choose the best policy, insurer, and of course find the sufficient level of coverage you require, for your car parts store.
Why Comparing Insurers Is A Good Idea
So you have narrowed down your insurance option to a few companies. Why should you compare quotes? Some reasons to do so include:
- The savings. When you take the time to compare insurers and coverage, you find the best rates from top insurers.
- Coverage options. You can compare the optional protection, required coverage, and additional policy protections.
- You can find more coverage for less. When you compare prices and coverage, you will find some insurers provide higher levels of protection at lower prices.
In addition to the savings, you can compare the actual insurers. This allows you to choose a reputable insurer for your car parts store insurance policy, and find the highest level of protection for the best rates possible.
All in all, you are in business, and trying to turn a profit. If you continually lose merchandise because of theft, if a major catastrophe strikes forcing you to shut down your shop for some time, or if other issues arise, your car supply store insurance policy is going to protect you.
Not only will it help you keep your doors open when accidents do occur, but will also afford you benefits and protection you otherwise wouldn't have.
Automobile Accessories Store's Risks & Exposures
Premises liability exposure comes from slips and falls due to public access to the premises. All stock should be on shelves that are easily accessible to customers. Aisles must be adequate and free of debris. Floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. If there is any rental of equipment, it should be inspected and reconditioned before it is rented again. If customers are permitted to service their vehicles on premises, housekeeping and supervision are critical.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises are open after dark, there should be adequate lighting and appropriate security for the area.
Personal injury exposure can arise from apprehending and detaining suspected shoplifters. The use of closed-circuit camera systems prevents such incidents from evolving into a "he said, she said" situation. Employees must be trained to deal with such delicate situations properly.
Products liability exposure is normally low unless the store repairs vehicles or assists vehicle owners with their do-it-yourself projects. If the applicant directly imports or reconditions items for resale, the exposure increases to the point of a manufacturer. The completed operations exposure for brake turning or other service work must be considered as a product failure could result in an accident.
Environmental impairment exposure comes from the disposal of batteries, oils and fuels. All disposal must meet EPA standards.
Workers compensation exposures are from lifting that can cause back injury, hernias, sprains and strains and from slips and falls. Brake turning, welding or other repair work must be handled only with appropriate safety equipment, especially eye protection. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Employees performing maintenance or repair work on customers' vehicles should be properly trained.
Property exposures come from flammables such as lubricants, oils, degreasers, and solvents used in the repair operations. They must be properly stored, separated and controlled. Aerosols and flammable additives contribute to the overall fire potential. Theft may be a concern as the items sold are considered target items. Appropriate security controls must be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Crime exposures are from employee dishonesty and loss of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be separation of duties between persons handling deposits and disbursements and handling bank statements. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made throughout the day to prevent a buildup of cash on the premises.
Inland marine exposures are from accounts receivable if the store offers credit, computers to transact sales, monitor inventory and perform diagnostic testing, and valuable papers and records due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises.
Commercial auto exposure is generally limited to hired and non-owned for employees running errands. Any potential driver should have a valid driver's license and an acceptable MVR. If delivery is a regular part of the operation, any driver hired for that position must have a commercial license and MVR should be checked and monitored. All vehicles must be maintained with documentation kept. If the store repairs customers' vehicles, garagekeepers liability should be considered.
What Does Auto Supply Parts Store Insurance Cover & Pay For?
Auto supply parts stores can be sued for a variety of reasons, including:
- Defective products: If an auto part sold by the store is defective and causes injury or damage to a vehicle, the store may be held liable.
- Negligence: If the store fails to properly inspect, maintain, or install a part, and it results in injury or damage, they may be sued for negligence.
- Misrepresentation: If the store misrepresents the quality or functionality of a product, they may be sued for fraud or misrepresentation.
- Breach of warranty: If the store fails to honor a warranty on a product, they may be sued for breach of warranty.
In order to protect themselves against such lawsuits, auto supply parts stores typically carry liability insurance. Liability insurance can help pay for the costs associated with a lawsuit, including legal fees, settlements, and judgments.
For example, if a customer is injured due to a defective auto part and sues the store for damages, liability insurance can help cover the costs of defending the lawsuit, as well as any settlement or judgment that may be awarded.
Similarly, if a store is sued for negligence or misrepresentation, liability insurance can help cover the costs associated with defending the lawsuit and paying any damages that may be awarded.
In the case of breach of warranty, liability insurance may help cover the costs of defending the lawsuit and paying any damages that may be awarded if the store is found to have breached its warranty.
Overall, liability insurance is an important tool for protecting auto supply parts stores against lawsuits and the costs associated with them. By carrying adequate insurance coverage, stores can help ensure that they are protected in the event of a lawsuit.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5531 Auto and Home Supply Stores
- NAICS CODE: 441310 Automotive Parts and Accessories Stores, 441320 Tire Dealers
- Suggested Workers Compensation Code(s): 8046 Automobile - Parts and Accessories NOC & Drivers, 8380 Automobile - Service or Repair Center & Drivers
5531: Auto and Home Supply Stores
Division G: Retail Trade | Major Group 55: Automotive Dealers And Gasoline Service Stations | Industry Group 553: Auto And Home Supply Stores
5531 Auto and Home Supply Stores: Establishments primarily engaged in the retail sale of new automobile tires, batteries, and other automobile parts and accessories. Such establishments frequently sell a substantial amount of home appliances, radios, and television sets. Establishments dealing primarily in used parts are classified in Wholesale Trade, Industry 5015. Establishments primarily engaged in both selling and installing such automotive parts as transmissions, mufflers, brake linings, and glass are classified in Services, Industry Group 753.
- Automobile accessory dealers-retail
- Automobile air-conditioning equipment sale and installation-retail
- Automobile parts dealers-retail
- Battery dealers, automobile-retail
- Speed shops-retail
- Tire dealers, automotive-retail
- Tire, battery, and accessory dealers-retail
Auto Supply Parts Store Insurance - The Bottom Line
To find out exactly what type of auto parts insurance you need and how much coverage you should carry, speak to a reputable broker to go over your options.
Additional Resources For Auto Service & Repair Insurance
Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.
- Auto Dealers
- Auto Detailing & Mobile Car Wash
- Auto Dismantlers
- Auto Garage
- Auto Glass Repair Shops
- Auto Paint Shops
- Auto Service Repair
- Auto Supply Parts Store
- Car Rental
- Car Wash
- Gas Station
- Motorcycle Dealers
- Parking Lot
- RV Dealers
- Snowmobile Dealers
- Truck Rental
- Used Car Dealer
The auto service and repair industry is an essential part of the transportation sector, responsible for maintaining and repairing vehicles to keep them running smoothly and safely. However, this industry also comes with inherent risks and liabilities, which is why commercial insurance is necessary to protect both the business and its employees.
First and foremost, the auto service and repair industry deals with hazardous materials and equipment on a daily basis. There is a risk of accidents and injuries occurring in the workshop, and insurance can provide financial protection in the event of a workplace accident or injury.
Additionally, the auto service and repair industry is subject to the risk of property damage. There is a potential for damage to vehicles in the workshop, as well as damage to the business' own property, such as tools and equipment. Business insurance can cover the costs of repair or replacement in the event of such damage.
Furthermore, the auto service and repair industry is vulnerable to liability claims from customers. If a customer's vehicle is not repaired properly, it can result in further damage or accidents on the road, leading to liability claims against the business. Insurance can provide coverage for these types of claims, protecting the business from financial loss.
In conclusion, the auto service and repair industry needs commercial insurance to protect against the risks and liabilities inherent in this line of work. Without insurance, businesses in this industry would be vulnerable to financial loss and legal action, which could ultimately lead to their failure.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.